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Metemamen 
Micro-Finance Institution

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( a )  General Information

Year of Establishment

2002

Legal Status

Metemamen Micro Financing Institution S.C. was legally registered by the National Bank of Ethiopia, according to Proclamation No.40/1996.

Current Operational Area (s)

Oromiyaa Regional State

Future Expansion Plan

Metemamen Micro financing institution S.C. intends to increase its outreach to 10,534 and 2,500 in the Addis Ababa City Administration and the Oromiyaa Regional State, respectively, within the next 3 to 5 years.

Total Number of Woredas Covered so far

Four Woredas in the Oromiyaa Regional State

Total Number of Branches Opened so far

One Branch and six sub-branches

Total Number of Clients served so far

1,700 out of which 1,580 and 120 are urban, semi-urban and rural clients

respectively.

Gender Sensitivity

Male clients = 42%, Female Clients = 79%

(b)  Loan Services/Products

• Group Loan (Village Banking)

Note:   [Metemamen defines a Village Bank as a voluntary community association with a membership of 20 to 50 active poor clients. Members of the Village Bank are expected to have similar needs and are living in the same geographic location with same neighborhood, Kebeles or peasant associations. Solidarity groups, with five to seven members, are organized within the Village Bank to have a double level guarantee system. Loans are issued to the Village Banks and repay the total amount within a period of four months. The Village Bank is also responsible to collect loans from its individual members, every two weeks].  

Metemamen provides loan that are small and easily accessible and are to be used for productive activities. 

Annual Lending Rate

24%, flat

Loan Size

Loan Term

Maximum Loan term = 9 months

Minimum Loan term = No minimum loan term is set.  Each village bank decides the term that is not more than 9 months.

Loan Eligibility Criteria

Potential clients are expected to meet the following criteria:

• 18 years of age and above;

• An Ethiopian with permanent residence of Metemamen’s operational area;

• Should be active poor engaged in productive economic activity;

• Should be credit worthy and has a good track record if he/she had been involved in some kind of similar activities earlier;

• Must be willing to form a solidarity group so as to form a village bank;

• Must be willing to accept and abide by the principles, rules and procedures of Metemamen Micro Financing Institution S.C.;

• Willing to abide by the bylaws of the village bank;

Type of Collateral Needed

No asset collateral except double-level Group Guarantee system.

Some of the economic activities financed so far

• Petty trade;

• Sheep and oxen fattening;

• Handicraft;

• Grain trade;

• Crop cultivation;

• Livestock and poultry.

Grace Period

No Grace period.

Time needed to process and get loan

Eight weeks training is mandatory to get the first loan. Then after, subsequent loans are disbursed one day after the previous loan is collected as long as the village bank has no arrears.

Business Plan Presentation

It is the responsibility of the management committee of the village bank to assess the business of each member. With the assistance of Metemamen’s loan officers, the committee evaluates the following concerning borrowers:

• Purpose of loan  (specific business activity that the borrower is requesting loan for);

• Availability of market or demand for the product/service of the borrower;

• Current selling price of the product/service, expected cost of running the business and its profitability;

• Borrower’s capacity to repay loans back is evaluated;  

Loan Application Format

The executive committee of the village bank submits the loan application to the branch office of Metemamen. The application, among others, contains the following:

• List of the village bank members;

• Amount requested by each member and approved by the village bank;

• Loan repayment schedule;

• Address of the village bank;

• Total amount of loan requested.

Target Clients for Loans

• Active rural and urban poor organized into village banks with a membership of 20 to 50 people. At least 75% of them should be women.

Willingness to lend to new business start-ups such as high school drop-outs, college graduates and similar groups

Currently, no loan is being provided to new business start-ups at Metemamen.

Frequency of Revising Institutional Financial Policies

Metemamen revises its financial policies every year.

(c) Savings Products

 (d)  Other Services

• Training is provided to the management committee of the village bank.

Service Out-let

Services of the Institution can be accessed through Farmers’ Association and branch/sub-branch offices of the Institution in rural areas and through Kebele Administrations and branch/sub-branch offices in urban areas. Metemamen also provides services through community based organizations such as ‘Iddir’.

New products to be introduced during the coming 3-5 years

Address

P.O.Box:  21304 code1000, Addis Ababa, Ethiopia

Telephone:  +251-1-623478/635801

Fax:  +251-1-611146

E-mail: mmfisc@telecom.net.et          MMFISC@telecom.net.et

Branch Office

Telephone:   +251-2-122994, Adama (Nazareth)

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